tci Medicare Compliance & Reimbursement - 2014 Issue 14

Enforcement News: Scrutinize Your Policy for Clauses That Bar Coverage for HIPAA Investigation

Plus: Brace for more struggles with regulatory authorities ahead. If you think that your insurer will cover the costs of a HIPAA investigation against your directors and officers, you could be in for a rude awakening. Drug-testing company Millennium Laboratories Inc. is facing just such a problem. The laboratory has sued its liability insurer Allied World Assurance Co. (AWAC) for attempting to get out of covering Millennium’s defense costs related to a HIPAA investigation by the U.S. Department of Justice (DOJ) that began in early 2012, Law360 reports. On May 23, Millennium and AWAC each filed motions...

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